Qatar had granted McDermott last year a major contract for the multi-billion LNG North Field Expansion project.
Qatargas has awarded McDermott a major contract for the North Field Production Sustainability (NFPS) Offshore Fuel Gas Pipeline and Subsea Cables Project (COMP1), the American company announced on Wednesday.
The contract with the Houston-based company entails delivering the engineering, procurement, construction, and installation for the major project. The American company said it defines a major contract as between $750 million and $1.5 billion.
“The COMP1 award reflects the confidence key customers have in our ability to deliver strategically significant energy infrastructure projects in the Middle East,” Mike Sutherland, McDermott Senior Vice President, Offshore Middle East, said in a press release.
COMP1 is part of the NFPS project, which involves the installation of compression complexes at seven locations to maintain the production of liquified natural gas (LNG) at the North Field.
McDermott is set to install subsea pipelines, composite cables, 116 miles of fiber optic cables, and six miles of onshore pipelines.
“The project will be managed and engineered entirely from the McDermott Doha office with fabrication taking place at QFAB,” the American entity said.
A joint venture between Malaysia’s Ranhill Utilities and the world’s largest engineering company, Worley, inked a reported contract in April for the NFPS project. Reports said the engineering design work is part of the $50 million contract from a Saipem subsidiary in Italy.
Qatargas had also granted Saipem a record $4.5 billion engineering, procurement, fabrication, and installation contract last year.
The initial development phase of the NFPS project is being developed by numerous packages, all of which are being carried out by Qatargas, a division of state-owned QatarEnergy.
Qatar had granted McDermott last year a major contract for the multi-billion LNG North Field Expansion project. The company described the previous contract as “one of the largest” it received in its history.
“We are helping the State of Qatar expand LNG production from 77 to 126 MTPA via the new LNG trains under construction. We are delighted to deliver this key pipeline and cable infrastructure and support the extension of the production plateau for the existing LNG trains,” Sutherland said.
The LNG giant is on its way to dominate global energy supply with the North Field expansion project, the largest of its kind in the industry.
The $28.75 billion Qatari project is broken into two parts, the North Field East and the North Field South (NFS). The first is set to ramp up Qatar’s production from 77 to 110 MTPA (million tonnes per annum) and the latter will increase the production capacity from 110 to 126 MTPA.
Last year, QatarEnergy had announced eight international partnership agreements for both phases of the projects.
Qatar is also set to ink a high volume of long-term LNG offtake contracts this year, according to Reuters, which cited energy minister Saad Sherida Al-Kaabi during a conference in Canada on Monday.
Al-Kaabi told the energy conference that the Gulf state is set to dominate 40% of all the new LNG that will enter the market by 2029 due to its mega energy projects.
“Forty percent of all the new LNG that will come to the market by 2029, when all our projects are up and running, is going to be from QatarEnergy,” Al-Kaabi, who is also the CEO of state-owned QatarEnergy, told the International Conference & Exhibition on LNG.
